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Can Connecticut Stay Hedge-Fund Haven?

Connecticut is poised to become one of the first states to impose transparency rules on the hedge-fund industry, after giving up on waiting for the federal government to do so.

The state's Senate this week passed the measure, which would require fund managers and other investment advisers that haven't voluntarily registered with the Securities and Exchange Commission to alert investors to any material conflicts of interest. Firms that are SEC-registered already are required to abide by such guidelines.